(4) Exempt auction receipts.
The receipts from the following auction sales are exempt:
Except as provided in sub. (5)
, auction sales of personal farm property or household goods which are held at a location where the auctioneer holds 5 or fewer auctions during the calendar year. In this paragraph:
“Household goods" includes tangible personal property and items, property, and goods under s. 77.52 (1) (b)
, and (d)
, Stats., which is associated with maintaining a household and is for family use. “Household goods" does not include:
Highway motor vehicles or trailers, snowmobiles, all-terrain vehicles, utility terrain vehicles, off-highway motorcycles, mini bikes, aircraft, and boats.
Tax 11.50 Note
Example: Household goods include furniture necessary or ornamental to a house in furnishing or fitting it for use by members of the household. Thus household goods include goods removed from a family home, such as tables, chairs, lamps, appliances, beds, clocks, musical instruments, dressers, lawn and garden equipment, jugs and fruit jars, sporting goods or hobby equipment including bats, balls, tennis racquets, golf clubs, guns and ammunition, and related hunting equipment, fishing equipment, camping equipment, photographic equipment, tools, bicycles, and personal collections of those items.
“Personal farm property" includes tractors, implements of husbandry, machines, equipment or other tangible personal property and items, property, and goods under s. 77.52 (1) (b)
, and (d)
, Stats., used by the owner in the business of farming. “Personal farm property" does not include racing, pleasure riding, or show horses, pets or other recreational animals not used in farming, highway vehicles and boats.
Sales for resale or sales that are otherwise exempt. If such a sale is made at an auction, the person conducting the auction should obtain a properly completed exemption certificate from the purchaser.
Auction sales by religious, charitable, educational, or civic organizations and other nonprofit organizations that conduct a fund raising event, if both of the following apply:
The auctioneer is not the retailer, because the auctioneer's services are donated.
(5) Auction sales of motor vehicles, boats, snowmobiles, recreational vehicles as defined in s. 340.01 (48r), stats., trailers, semi-trailers, all-terrain vehicles, utility terrain vehicles, off-highway motorcycles, and aircraft. Tax 11.50(5)(a)
An auctioneer shall collect, report, and remit tax on its sales of any of the following items if the auctioneer is a retailer, unless an exemption applies:
A buyer who purchases any of the items listed in par. (a) 1.
from an auctioneer who is a retailer shall pay the tax to the auctioneer, unless an exemption applies. If the buyer does not pay the tax to the auctioneer, the buyer shall file a return and pay the tax, as prescribed by the department, prior to registering or titling the item in Wisconsin.
Auction sales of the items listed in par. (a) 1.
do not qualify for exemption as occasional sales of personal farm property or household goods if the items are registered or titled or required to be registered or titled in Wisconsin. Auction sales of boats also do not qualify for exemption as occasional sales of personal farm property or household goods if the boats are registered or titled or required to be registered or titled under the laws of the United States.
Tax 11.50 Note
The interpretations in s. Tax 11.50
are effective under the general sales and use tax law on and after September 1, 1969, except: (a) The standard in sub. (4) (d) 2. became effective January 1, 1989, pursuant to 1987 Wis. Act 399
; (b) The occasional sale exemption for five or fewer auctions at a location became effective January 1, 2000, pursuant to 1999 Wis. Act 9
; (c) The requirement for auctioneers to collect, report, and remit tax on sales of motor vehicles, boats, snowmobiles, recreational vehicles as defined in s. 340.01 (48r)
, Stats., trailers, semi-trailers, all-terrain vehicles, and aircraft, regardless of whether the auctioneer is a dealer of such items became effective October 1, 2009; and (d) The change of the term “gross receipts" to “sales price" and the separate impositions of tax on coins and stamps sold above face value under s. 77.52 (1) (b)
, Stats., certain leased property affixed to real property under s. 77.52 (1) (c)
, Stats., and digital goods under s. 77.52 (1) (d)
, Stats., became effective October 1, 2009, pursuant to 2009 Wis. Act 2
Tax 11.50 History
Cr. Register, January, 1978, No. 265
, eff. 2-1-78; am. (3) (e), Register, December, 1983, No. 336
, eff. 1-1-84; am. (4) (d) 3., Register, April, 1985, No. 352
, eff. 5-1-85; am. (4) (d) 3., Register, December, 1987, No. 384
, eff. 1-1-88; am. (2), (3) (a), (b), (c), (d) and (h) and (4) (a) (intro.), 1. (intro.), a. and 2. and (d) (intro.), 1. and 2., r. (4) (d) 3., renum. (4) (c) to be (3) (i), Register, June, 1991, No. 426
, eff. 7-1-91; EmR0924
: emerg. r. and recr. eff. 10-1-09; CR 09-090
: r. and recr. Register May 2010 No. 653
, eff. 6-1-10; CR 16-053
: am. (4) (a) 1. a., (5) (title), cr. (5) (a) 7m. Register June 2018 No. 750
, eff. 7-1-18; CR 19-112
: am. (4) (a) 1. a., (5) (title), cr. (5) (a) 9. Register June 2020 No. 774
, eff. 7-1-20.
All sales of tangible personal property and items, property and goods under s. 77.52 (1) (b)
, and (d)
, Stats., are taxable except when a specific exemption applies. One of the exemptions is for “food and food ingredients," which generally exempts all food and food ingredients for human consumption, except candy, soft drinks, dietary supplements, and prepared food. This exemption also does not include many items normally available in grocery and food stores, such as soft drinks, alcoholic beverages, tobacco products, paper products, and detergents.
“Food and food ingredients" is defined in s. 77.51 (3t)
, Stats., to mean a substance in liquid, concentrated, solid, frozen, dried, or dehydrated form, that is sold for ingestion, or for chewing, by humans and that is ingested or chewed for its taste or nutritional value. “Food and food ingredient" does not include alcoholic beverages or tobacco.
The lists in sub. (2)
shall serve as a guide to grocers to determine the kinds of items that are taxable and exempt.
Taxable sales by grocers.
Taxable sales include sales of the following items:
Baby needs, except food.
Bags of all kinds.
Baking chips, sweetened.
Baking chocolate that contains a sweetener in the form of bars, drops, or pieces.
Batteries, except hearing aid batteries.
Bird food and supplies.
Bobby pins and rollers.
Bottled water, sweetened.
Breath mints, unless they contain flour.
Breath sprays and strips.
Cake decorations, non-edible.
Cake decorations that are candy.
Cameras and supplies.
Canning and freezer supplies.
Cat food and supplies.
Cereal bars, unless they contain flour.
Charcoal and starter.
Chocolate chips and other flavored chips, if sweetened.
Chocolate covered potato chips, unless they contain flour.